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SPECIFIC IMPLEMENTATION ARRANGEMENT

for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay


Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF BANGAD, with office address at the Barangay Hall,


Barangay Bangad , Municipality of Santa Maria, represented by its
BARANGAY CHAIRPERSON HON. MELCHOR L. GUZMAN referred
herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
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of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
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Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
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Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
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under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
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2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

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e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
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ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

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xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
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b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

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ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. MELCHOR L. GUZMAN


Barangay Chairperson,
Barangay Bangad

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF BUENAVISTA, with office address at the Barangay


Hall, Barangay Buenavista , Municipality of Santa Maria, represented
by its BARANGAY CHAIRPERSON HON. JOSEPHINE M. IGLESIAS
referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
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2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

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xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
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b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. JOSEPHINE M. IGLESIAS


Barangay Chairperson,
Barangay Buenavista

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF CALAMAGUI EAST, with office address at the


Barangay Hall, Barangay Calamagui East , Municipality of Santa
Maria, represented by its BARANGAY CHAIRPERSON HON. ROY B.
CRISTOBAL referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
Page 6 of 21
and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. ROY B. CRISTOBAL


Barangay Chairperson,
Barangay Calamagui East

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF CALAMAGUI NORTH, with office address at the


Barangay Hall, Barangay Calamagui North , Municipality of Santa
Maria, represented by its BARANGAY CHAIRPERSON HON. SOFIA G.
PAGUITAN referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
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of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
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Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
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Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
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under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. SOFIA G. PAGUITAN


Barangay Chairperson,
Barangay Calamagui North

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF CALAMAGUI WEST, with office address at the


Barangay Hall, Barangay Calamagui West , Municipality of Santa
Maria, represented by its BARANGAY CHAIRPERSON HON. ANGELO
D. CABAUTAN referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
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2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
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b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. ANGELO D. CABAUTAN


Barangay Chairperson,
Barangay Calamagui West

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF DIVISORIA, with office address at the Barangay


Hall, Barangay Divisoria , Municipality of Santa Maria, represented by
its BARANGAY CHAIRPERSON HON. EDWIN T. CARAG referred herein
as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
Page 6 of 21
and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. EDWIN T. CARAG


Barangay Chairperson,
Barangay Divisoria

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF LINGALING, with office address at the Barangay


Hall, Barangay Lingaling , Municipality of Santa Maria, represented by
its BARANGAY CHAIRPERSON HON. OMAR D. LAGGUI referred herein
as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
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of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
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Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
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Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
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under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. OMAR D. LAGGUI


Barangay Chairperson,
Barangay Lingaling

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF MOZZOZZIN NORTH, with office address at the


Barangay Hall, Barangay Mozzozzin North , Municipality of Santa
Maria, represented by its BARANGAY CHAIRPERSON HON. DANILO M.
CANCERAN referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. DANILO M. CANCERAN


Barangay Chairperson,
Barangay Mozzozzin North

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF MOZZOZZIN SUR, with office address at the


Barangay Hall, Barangay Mozzozzin Sur , Municipality of Santa Maria,
represented by its BARANGAY CHAIRPERSON HON. EDMAR A.
PANGANIBAN referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
Page 6 of 21
and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. EDMAR A. PANGANIBAN


Barangay Chairperson,
Barangay Mozzozzin Sur

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF NAGANACAN, with office address at the Barangay


Hall, Barangay Naganacan , Municipality of Santa Maria, represented
by its BARANGAY CHAIRPERSON HON. JOEY T. CORPUZ referred
herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
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of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
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Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
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Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
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under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. JOEY T. CORPUZ


Barangay Chairperson,
Barangay Naganacan

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF POBLACION 1, with office address at the


Barangay Hall, Barangay Poblacion 1 , Municipality of Santa Maria,
represented by its BARANGAY CHAIRPERSON HON. ALFONSO A. PUA,
JR. referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
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2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. ALFONSO A. PUA, JR.


Barangay Chairperson,
Barangay Poblacion 1

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF POBLACION 2, with office address at the


Barangay Hall, Barangay Poblacion 2 , Municipality of Santa Maria,
represented by its BARANGAY CHAIRPERSON HON. VICTOR A.
VINARAO referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
Page 6 of 21
and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. VICTOR A. VINARAO


Barangay Chairperson,
Barangay Poblacion 2

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF POBLACION 3, with office address at the


Barangay Hall, Barangay Poblacion 3 , Municipality of Santa Maria,
represented by its BARANGAY CHAIRPERSON HON. RODERICK A.
BAGUNU referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
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of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
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Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
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Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. RODERICK A. BAGUNU


Barangay Chairperson,
Barangay Poblacion 3

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF QUINAGABIAN, with office address at the


Barangay Hall, Barangay Quinagabian , Municipality of Santa Maria,
represented by its BARANGAY CHAIRPERSON HON. AVELINO C.
SAQUING referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
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2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

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xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
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b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. AVELINO C. SAQUING


Barangay Chairperson,
Barangay Quinagabian

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF SAN ANTONIO, with office address at the


Barangay Hall, Barangay San Antonio , Municipality of Santa Maria,
represented by its BARANGAY CHAIRPERSON HON. MARVIN C.
VINASOY referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
Page 6 of 21
and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. MARVIN C. VINASOY


Barangay Chairperson,
Barangay San Antonio

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF SAN ISIDRO EAST, with office address at the


Barangay Hall, Barangay San Isidro East , Municipality of Santa Maria,
represented by its BARANGAY CHAIRPERSON HON. JOSELITO F.
TAGUBA JR. referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
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of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
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Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
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Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
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under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
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2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

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e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
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ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

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xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
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b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

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ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. JOSELITO F. TAGUBA JR.


Barangay Chairperson,
Barangay San Isidro East

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF SAN ISIDRO WEST, with office address at the


Barangay Hall, Barangay San Isidro West , Municipality of Santa
Maria, represented by its BARANGAY CHAIRPERSON HON. ROBIN C.
CARINUGAN referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. ROBIN C. CARINUGAN


Barangay Chairperson,
Barangay San Isidro West

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF SAN RAFAEL EAST, with office address at the


Barangay Hall, Barangay San Rafael East , Municipality of Santa
Maria, represented by its BARANGAY CHAIRPERSON HON. ROMMEL
B. FLORES referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
Page 6 of 21
and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. ROMMEL B. FLORES


Barangay Chairperson,
Barangay San Rafael East

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

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SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF SAN RAFAEL WEST, with office address at the


Barangay Hall, Barangay San Rafael West , Municipality of Santa
Maria, represented by its BARANGAY CHAIRPERSON HON. VIVIAN L.
CAGURUNGAN referred herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
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of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
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to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
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Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
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Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
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under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
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2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

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e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
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ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

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xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
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b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
Page 16 of 21
Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

Page 17 of 21
to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

Page 18 of 21
incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
Page 19 of 21
thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. VIVIAN L. CAGURUNGAN


Barangay Chairperson,
Barangay San Rafael West

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

Page 20 of 21
ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

Page 2 of 21
SPECIFIC IMPLEMENTATION ARRANGEMENT
for the KALAHI-CIDSS Kapangyarihan at Kaunlaran sa Barangay
Community-Driven Development Program (KC KKB-CDD)

This Specific Implementation Agreement (SIA), thereinafter known as the


“AGREEMENT” was entered into by and between:

The DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


(DSWD), through DSWD FIELD OFFICE 2 with office address at #3
Dalan y Pagayaya St., Carig Sur, Tuguegarao City represented by
REGIONAL DIRECTOR LUCIA S. ALAN referred herein as “DSWD”.

– and –

The LOCAL GOVERNMENT OF SANTA MARIA, with office address at


Poblacion 1, Santa Maria, Isabela, represented by its LOCAL CHIEF
EXECUTIVE, HON. HILARIO G. PAGAUITAN, referred herein as the
“Municipality”.

– and –

The BARANGAY OF VILLABUENA, with office address at the Barangay


Hall, Barangay Villabuena , Municipality of Santa Maria, represented
by its BARANGAY CHAIRPERSON HON. JUNAR L. LAGGUI referred
herein as the “Barangay”.

Collectively, referred to as the “Parties”.

LEGAL BASES

This AGREEMENT is executed by virtue of the Memorandum of Agreement (MOA)


signed by the above-mentioned parties last ____________ and in consideration of
DSWD Memorandum Circular No. 9 series of 2023 “Guidelines on the
Implementation of the Community-Driven Development (CDD) Approach of the
Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS)”.

ARTICLE I
DEFINITION OF TERMS

Section 1. As used in the AGREEMENT, the following terms shall mean:

a. Area Coordinating Team (ACT) - refers to the team based in the


Municipality covered by KC-NCDDP and is responsible for the day-to-day
operations of the Program.

b. Community Sub-Project - refers to the community project prioritized and


approved by the assembly as a response to an identified need and/or
problem.

c. Barangay Development Council-Technical Working Group (BDC-TWG)


- refers to the committee formed under the BDC to provide overall
management of the subproject.

d. Disaster - refers to serious disruption of the functioning of a community


or society involving widespread human, material, economic or
environmental losses and impacts, which exceeds the ability of the affected
community or society to cope with using its own resources. For purposes
Page 1 of 21
of these implementation arrangements, disaster shall refer to natural and
man-made disasters.

e. Grant - refers to the funds from the Government of the Philippines (GOP),
through the DSWD, released to the Barangay for implementation of the
approved sub-project.

f. The Department of Social Welfare and Development (DSWD) - refers to


the national government agency charged for the protection of the social
welfare of rights of Filipinos and the promotion of social development and
is one of the agencies implementing the program.

g. Local Counterpart Contribution (LCC) - refers to the contribution of the


local government units, communities, and other stakeholders for the
implementation of the approved sub-project. It can be in the form of cash
or in kind.

h. Municipal Inter-Agency Committee (MIAC) - refers to the committee


chaired by the Mayor and is composed of the Municipal Planning and
Development Coordinator, Municipal Social Welfare and Development
Officer, Municipal Local Government Operations Officer, Municipal Health
Officer, Municipal Agriculture Officer, Municipal Budget Officer, Municipal
Disaster Risk Reduction and Management Officer. It shall have the
responsibility of monitoring ongoing barangay sub-projects.

i. The National Program Management Office (NPMO) - refers to the


national head of the KALAHI-CIDSS based at the Central Office of the
DSWD and assumes full responsibility in the coordination of policy and
for the overall management of the Program.

j. The Regional Program Management Office (RPMO) - refers to the


satellite offices of the KALAHI-CIDSS based in the Field Offices of the
DSWD and takes responsibility for the Program implementation in the
Regions.

k. Specific Implementation Arrangement (SIA) - refers to the


implementing document of the MOA signed last ________ which defines the
scope, structure and arrangement of the Parties in the implementation of
this Sub-Project.

ARTICLE II
ROLES AND RESPONSIBILITIES OF THE PARTIES

Section 2.1. The DSWD shall:

a. Authorize the transfer of Grant funds from the Land Bank of the
Philippines (LBP) to the Barangay Trust Fund account in the local LBP
Branch;

b. Provide Grants for community sub-projects identified through a


participatory, transparent, and open process of community prioritization,
following Program guidelines for the purpose. The total amount of
indicative community Grants shall depend on the initial category of
municipalities under the Program. This grant for community projects shall
be downloaded directly to respective bank accounts opened for the
prioritized barangays;

c. Provide Grants to Barangays, upon request and subject to Program


guidelines, for the preparation of community sub-project proposals and/or
Page 2 of 21
to support specific aspects of sub-project implementation, for and of
selective types of sub-projects;

d. Promote, through the ACT and Regional Program Management Office, in


partnership with the Regional and Provincial Department of Interior and
Local Government and the Municipal Local Government Operations Officer
(MLGOO), the active participation of provincial, municipal, and barangay
local government units in Program implementation, facilitate enhanced
functionality of Municipal and Barangay Development Councils and
updating of Municipal and Barangay Development Plans, and ensure wide
acceptance and ownership of KALAHI CIDSS principles and processes by
the Provincial, Municipal, and Barangay LGUs;

e. Establish linkages with other National Government Agencies (NGA), Donor


and other Development Agencies, Private Foundations, and Civil Society
Organizations, to leverage development assistance resources, technical
assistance, and other forms of support for Program municipalities and
communities;

f. Assign an Area Coordinating Team (ACT) at the Municipality, composed of


an Area Coordinator, Technical Facilitator, Municipal Financial Analyst,
and Community Empowerment Facilitators. The ACT shall be tasked with
the following duties:

i. Coordinate with the MDC, LCE, and other stakeholders on the


introduction, formulation, implementation, monitoring, and
evaluation of KC KKB - CDD projects and activities to be
undertaken in the Municipality;

ii. Conduct monitoring, technical assistance provision, and


capability-building interventions to the Municipal
Coordinating Team (MCT) and the Community Volunteers
(CVs), to ensure that participatory development processes are
correctly done and the design, selection, implementation, and
operation and maintenance of sub-project are compliant to
procedural, technical and financial standards set by the
Program as reflected in its various manuals and
implementation guidelines;
iii. Ensure that all the Disbursement Vouchers (DV) and
supporting documents of the implementing Barangay are
reviewed and conform with existing government accounting
and auditing laws, rules, and regulations prior to any
payment that shall be made by the Barangay;

iv. Ensure the submission of the following reports by the


Barangay to the DSWD Field Office in conformance with
existing government rules:

1. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay
Treasurer approved by the Punong Barangay certified
by the Municipal Accountant noted by the Municipal
Local Government Unit (the Municipality) Local Chief
Executive and duly received by the auditor of the LGU.
This shall be submitted within ten (10) days after the
end of each month and finally at the end of the agreed
period for the Sub-Project Implementation;

2. A report of 100% physical accomplishment prepared by


the BDC-TWG Chairperson duly approved by the
Page 3 of 21
Punong Barangay and noted by the Municipal Local
Chief Executive shall be submitted upon completion of
the Sub-Project.

3. A copy of the Official Receipt issued by the DSWD for


the refund of unexpended balance, if there is any.

g. Promote the active participation of Provincial, Municipal, and Barangay


local government units in program implementation; facilitate functionality
of Municipal and Barangay Development Councils and update of
Municipal and Barangay Development Plans; and ensure wide acceptance
and ownership of KALAHI-CIDSS principles and processes by the
Provincial, Municipal, and Barangay LGUs in partnership with the
Regional and Provincial Department of Interior and Local Government and
the Municipal Local Government Operations Officer (MLGOO).

h. Inspect, by itself or jointly with representatives of organizations involved


in the Program, goods and the sites, works, plans, and construction
included in the Barangay Sub-Project, the operation thereof and any
relevant records and documents;

i. Review the Sub-Project Fund Utilization Reports, Cash Book, Local


Counterpart Contribution Journal, Bank Reconciliation Statements, and
other financial documents, books, and reports of the Sub-Project to
determine if all expenditure items are within the approved Sub-Project
budget and are properly documented;

j. Release funds to the Barangay’s Trust Account based on approved


Program of Works, and upon submission of required documents.

k. Provide capacity-building interventions to the Municipality and/or


Barangay and BDC-TWG members.

l. Suspend, terminate, or withdraw the Grant proceeds allocated to the


Barangay should it fail to perform its obligations under this AGREEMENT.

m. Establish linkages with National Government Agencies (NGA), donor and


development agencies, private foundations, and civil society organizations
to leverage logistic support, technical assistance, and other forms of
support.

Section 2.2. The Municipality shall:

a. Pass relevant ordinances and/or resolutions in support of community-


driven development and participatory governance, and implementation of
the KC KKB - CDD in the Municipality, to include but shall not be limited
to the following:

1. Institutionalization of People’s Participation, Transparency, and


Social Accountability, and development and implementation of
strategies to mainstream the same in LGU development planning
and poverty reduction projects, activities, and programs (PAPs);

2. Allocation of funds as local counterpart contribution to KC KKB-


CDD Sub-Projects;

3. Formation of Municipal Development Council (MDC) and Municipal


Coordinating Team (MCT), designation of members, and allocation
of funds for MDC and MCT operations. The MDC and MCT shall plan
their roles in the implementation of the KC KKB CDD. The
Page 4 of 21
Municipality shall form the MCT with the same number of staff as
that of the ACT. The MCT, especially the Community Empowerment
Facilitators (CEFs), shall be full-time staff to KC KKB - CDD;

4. Assigning Gender and Development (GAD) focal person who will


ensure integration of Gender Sensitivity and Gender Responsiveness
in the Project Implementation;

5. NGO and PO accreditation; and

6. Support for the Barangay Development Plan (BDP) formulation and


BDP-Municipal Development Plan integration.

b. Facilitate the convergence of the various National Government Agency


(NGA) poverty reduction initiatives that are being implemented in the
municipality;

c. Ensure the active involvement of the MLGOO and the Municipal Health
Officer (MHO) in the implementation of the KC KKB-CDD;

d. Provide Local Counterpart Contributions (LCC) for the implementation of


the KC KKB-CDD following the agreed delivery timetable indicated in the
approved LCC plan, which shall include, but may not be limited to the
following:

1. Salaries of the MCT staff that will implement the Program at the
Municipal and Barangay levels;

2. Monitoring and evaluation activities of the LGU staff and other M&E
conferences conducted at the municipal level;

3. Fund for other operating costs;

4. Cost of technical assistance provided to the community (e.g.


engineering support for the development and implementation of the
sub-projects including consultations with the health officers, etc.);
and

5. Operation and maintenance costs for barangay sub-projects.

e. Make accessible relevant information on the state of the Municipality, as


well as on LGU plans, programs, and activities including, but not
necessarily limited to, the following:

1. Income and expenditure (including municipal assets that may be


tapped to support Program implementation, as well as liabilities that
may hinder delivery of counterpart commitments - e.g., loans and
commitments to other NGAs and institutions;

2. Budgets, including data and information used for formulating budgets;

3. LGU Plans and activities to address local poverty and development,


including data and information used for formulating municipal plans;
and

4. LGU plans and activities to assess the state of competency of LGU staff,
and address competency gaps.
5. Opening of Municipal Trust Funds where all municipal cash
contributions for sub-projects (where applicable) and Capability-
Building and Implementation Support activities shall be deposited,
Page 5 of 21
under the agreed delivery timetable indicated in the approved LCC
delivery plan.

f. Promote and support the active engagement of citizens and their


organizations in the design, planning, and implementation of PAPs on
poverty reduction, and in the implementation of the KC-NCDDP in the
municipality:

1. Facilitate and process People’s Organization (PO) - Non-Government


Organization (NGO) accreditation;

2. Increase PO–NGO representation in the MDC, and ensure PO–NGO


representation in Local Special Bodies (LSB) at the municipal and
barangay level, specifically the Barangay Disaster Risk Reduction and
Management Council;

3. Provide preferential attention to the participation of women, and other


highly vulnerable groups (i.e. the poorest, Indigenous People (IP), youth,
the elderly, and others) in the implementation of the Program;

4. Subject the Municipal and Barangay GAD plans and the prioritization
of GAD-funded projects to participatory review and assessment of
gender responsiveness, and to possible enhancement;

5. Create mechanisms for regular LGU–Civil Society Organizations (CSO)


consultation and dialogue; and

6. Encourage PO-NGO participation in Program implementation, and in


independent monitoring.

g. Uphold and preserve the integrity of the KC KKB - CDD procurement and
fiduciary processes:

1. Assist BDC-TWG members as well as Community Volunteers in


undertaking procurement fairly and transparently, and defend the
community-based procurement process from any attempts at undue
influence; and

2. Assist the Program in helping volunteers to: (1) manage financial


transactions under existing rules and regulations and (2) ensure a
sound financial management system.

h. For Sub-projects funded wholly by the Government of the Philippines, the


provisions of the Barangay Financial Management System shall govern the
utilization of the funds released. In addition:

1. The City/Municipal Accountant shall require the submission of


Barangay’s pertinent financial transaction documents to the Office
of the Municipal Accountant and the resident COA of the
municipality as prescribed in COA Circular 2019-001 dated January
30, 2019. Further, the Municipal Accountant shall require the
submission to the Office of the Municipal Accountant and the
resident COA of the Municipality as prescribed in COA Circular
2019-001 dated January 30, 2019 the following pertinent financial
transaction documents of the Barangay:

i. Reports of Checks Issued and Reports of


Disbursement/Utilization prepared by the Barangay Treasurer,
approved by the Punong Barangay, certified by the Municipal
Accountant, noted by the Municipality’s Local Chief Executive,
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and duly received by the auditor of the LGU. This shall be
submitted within ten (10) days after the end of each month and
finally, at the end of the agreed period for the Sub-Project
Implementation.

ii. Upon completion of the sub-project, a Report of 100% physical


accomplishment was prepared by the BSPMC Chairperson duly
approved by the Punong Barangay, and noted by the Municipal
Local Chief Executive.

iii. If any, a copy of the Official Receipt issued by the DSWD for the
refund of the unexpended balance.

2. The City/Municipal Accountant shall ensure that the receipt of


funds is adequately supported through (i) preparation of the Journal
Entry Voucher for the receipt of grants; and (ii) proper filing of the
authenticated credit advice. These documents shall be submitted to
DSWD as attachments to the request for fund release.

3. The City/Municipal Accountant shall issue Certification that the


funds previously transferred by the DSWD to the Barangay, if any,
have been liquidated and taken up in the books.

4. The City/Municipal Accountant shall ensure that all Disbursement


Vouchers shall pass through the review of the ACT before any
disbursements that will be made by the Barangay and that the
Municipal Accountant shall be aware of these transactions.

5. Upon turnover of the Sub-Project to the Barangay, the


City/Municipal Accountant shall perform the necessary booking of
the Sub-Project in the books of the Barangay, if applicable, which
shall be based on documents to be provided by the Barangay
Treasurer (BT) as the basis for the booking. The relevant documents
shall include the following:
i. Sub-Project Completion Report;
ii. Mutual Partnership Agreement or Memorandum
of Understanding and;
iii. Certificate of Completion and Acceptance.

The City/Municipal Accountant shall book the asset under the


“Manual on the Financial Management of Barangays” prescribed
under COA Circular 2015-11 dated 1 December 2015. The
Municipality shall provide a copy of the proof of recognition of the
asset to the Regional Offices, through the Area Coordinating Teams,
for safekeeping and monitoring purposes. The applicable proofs of
recognition are duly signed documents by the C/M Accountant such
as, but not limited to, Certification of Booking with List of sub-
projects, Journal Entry Voucher, Property/Equipment Ledger Card,
etc.

i. Provide support to KC KKB - CDD implementation and capability-building


activities and, before the start of Program operations:

1. Organize, through Executive Order, a Municipal Inter-Agency


Committee (MIAC) to provide technical support to Program
implementation. MIAC members shall be headed by the Municipal
Mayor or his/her duly authorized representative, and composed of
all heads of LGU units such as, but not limited to, the MSWDO,
MPDC, MLGOO, Municipal Engineer, MHO, MAO, MARO, the
Budget Officer, SB Members, and other LGU staff.
Page 7 of 21
2. Form, through Executive Order, a Municipal Coordinating Team
(MCT) to provide implementation support to the Area Coordinating
Team (ACT) in the implementation of Program processes and
activities. MCT members must be municipal staff seconded to the
Project, or staff hired by the LGU for this purpose, and shall be
composed of a Municipal Area Coordinator, a Deputy Municipal Area
Coordinator, a Municipal Finance Officer, and at least one (1)
Community Facilitator for every three (3) barangays and the
Municipal Gender Focal Person, IP and DRRM Focal Person.

3. Assign a Municipal Staff as GAD Focal Person in support of Program


operations. The GAD shall sit as a member of the MCT and work
closely with the ACT and the MIAC in the performance of GAD-
related Program activities.

4. Activate the MDRRMC and BDRRMC to ensure the performance of


their assigned functions, and facilitate implementation of the DROM
implementation if necessary.

5. Provide office space within the Municipal building and office


furniture/fixtures, equipment, and supplies for a Joint MCT-DSWD
Area Coordinating Team and Municipal Action Team.

6. Provide equipment, full-time encoder, and other logistics support to


KC KKB CDD participatory monitoring and evaluation (M&E)
activities, including computer-based data processing (encoding,
collation, and storage) and provision of this data to the KC KKB CDD
ACT field staff and local communities for their reflection and action,
transparency and accountability.

j. Ensure compliance with the Program’s implementation procedures and


guidelines as contained in the Program’s various manuals, policy
issuances, and directives;

k. Comply with the minimum wage requirement as set by the Department of


Labor and Employment (DOLE) for the wages/salaries of hired personnel
to be committed to the program;

l. Participate in KC KKB CDD and LGU-community assessment meetings,


for local review of performance against MOA and the AGREEMENT
commitments, plans, targets and outcomes, and action planning.

m. Provide support and technical assistance to the Operation and


Maintenance (O&M) groups for the sustainability of completed sub-
projects in the previous cycles, such as but not limited to:

a. Ensure the periodic conduct of the Sustainability Evaluation on the


functionality of the Sub–Projects and its Operation and Maintenance
Groups.

b. Mobilize the Multi-stakeholders and Inspectorate Team (MSIT) or


existing Project Monitoring Team (PMT) to facilitate the conduct of
sustainability evaluation.

c. Maximize resources in allocating funds in support of the


sustainability of the Sub – Projects.

d. Recognize and accredit formed associations and other O&M Groups.

Page 8 of 21
e. Update the DSWD on the results of the conducted Sustainability
Evaluation.

Section 2.3. The Barangay through the BDC-TWG shall:

a. Receive the Grant funds transferred to its Barangay Trust Fund account
at the Land Bank of the Philippines from the DSWD;

b. Carry out the Sub-Project with due diligence and efficiency in accordance
with sound technical, managerial, social, and environmental standards
and practices, and maintain adequate records;

c. Prepare and implement an Environmental Management Plan and Social


Safeguards Plan on resettlement, and indigenous people’s participation in
the Program, if applicable;

d. Opens to the Program for inspection and audit of all goods, sites, works,
plans and construction, operations, and relevant records and documents
of the sub-project;

e. Provide to the Program all such information as may be reasonably


requested relating to the implementation of the sub-project, the
administration, operations, and financial conditions of the BDC-TWG;

f. Be transparent in all decisions related to the Sub-Project by regularly


reporting the physical progress to the ICC Assembly, posting Sub-Project
updates, reports, notices of bidding, approved contracts, etc. on
community billboards and bulletin boards in conspicuous places within
the barangay;

g. Safeguard all properties and resources of the Sub-Project. In line with this,
the Barangay through the BDC-TWG shall keep custody and preserve all
materials and equipment of the Sub-Project in a secure shed or structure
under the care of a materials and equipment custodian from the
community; and

h. Submit physical progress and community financial reports to the


Municipality and the DSWD-RPMO.

ARTICLE III
PROGRAM AND FINANCIAL MANAGEMENT

Section 3.1. The Sub-Project fund, whether from the Grant or equity
contribution of the Municipality, Barangay or the community members shall be
administered in accordance with the financial management system under the
Barangay LGU;

Section 3.2. The Barangay Council through a Resolution shall authorize the
Barangay Captain and the Barangay Treasurer to open a Barangay Trust
Account with the nearest LBP branch bank in the locality;

Section 3.3. The DSWD shall release the KALAHI-CIDSS KKB-CDD Grant
Funds to the Barangay’s Trust Account under the following schedule and
requirements:

a. First Tranche (90% of the allocated fund)

i. Letter Request for the release of the first tranche signed by the
Punong Barangay, and duly endorsed by the Regional Director or
authorized representatives;
Page 9 of 21
ii. Signed and Notarized Specific Implementation Agreement (SIA)
between the Department of Social Welfare and Development
(DSWD), Municipal Local Government Unit (the Municipality),
and Barangay Local Government Unit (the Barangay);

iii. Approved Program of Works or Program of Distribution supported


by a BDC-TWG Resolution or its equivalent confirming the
certification of the list of people who will work (for Cash for Work)
or receive assistance (Cash Assistance) has been properly
evaluated and validated.

The signature of the Punong Barangay in the Program of Works


is required to reconfirm the exact amount of LCC of the Barangay,
if the latter will provide counterpart resources. For the LCC of the
Municipality, the Resolutions promulgated (as applicable) should
be sufficient.

iv. The certification shall be signed by the BDC-TWG


Representative), Area Coordinator, Punong Barangay, BDRRMC
Chairperson, MDRRMC Chairperson, and Municipal Social
Welfare and Development Officer (MSWDO)

For Sub Projects involving only the purchase of equipment, a


Project Proposal signed by all of the signatories in the Program of
Works and detailed estimates signed by the Technical Facilitator,
Area Coordinator, BDC-TWG Chairperson, Municipal Engineer/
Municipal Health Officer (as applicable), and Municipal Mayor,
approved by the RPMO may be used instead of the Program of
Works.

For infrastructure sub-projects and/or Project Proposal with


estimated costs for other types of projects, the signature and
approval of the Punong Barangay;

v. Barangay Council Resolution authorizing the Punong Barangay


to enter into SIA;

vi. Bank Snapshot and/or Bank Certification indicating the


Barangay Trust Account Name and Number;

vii. Certification by the Municipality Accountant that the funds


previously transferred by DSWD to the Barangay, if any, have
been liquidated and taken up in the books. In cases where there
are no DSWD funds transferred to the Barangay for DSWD
programs, projects, and activities, a Certification by the DSWD
Regional Director or authorized representative shall be required.

viii. Certification from the Municipal Accountant to show that the


existing Bond Premium of the Barangay Treasurer and Barangay
Chairperson covers the fund transfer from KALAHI-CIDSS
supported by a computation presenting the bond coverage or
new/additional Bond Premium for the Barangay Treasurer and
the Barangay Chairperson if the existing Bond Premium for the
two cannot cover the fund transfer from KALAHI –CIDSS.

ix. Approved Sub – Project Concept Form

x. Approved Sub – Project Proposal

Page 10 of 21
xi. Barangay Council Resolutions authorizing Barangay Captain
and Barangay Treasurer to open a Barangay Trust Fund account
in the nearest LBP

xii. MDC Resolution/MDRRMC Resolution with the BDRRMC


resolution

xiii. Lot Acquisition Documents;

xiv. Environmental and Social Safeguards Checklist, Environmental


and Social Management Plan and other applicable safeguards
instruments, i.e. Indigenous Peoples Plan (IPP) (in cases where
sub–projects will involve adverse/negative impacts on indigenous
peoples), Resettlement Plan or RP (in cases where sub–projects
will involve involuntary resettlement impacts) permits and
clearances. The AGREEMENT shall also consider construction
safety guidelines for the implementation of the Sub–Projects with
reference to other safety and health protocols issued by the DOH
relevant to the Sub-Project proposed;

xv. Project Procurement Management Plan;

xvi. Annual Procurement Plan;

xvii. Certification from the authorized health officer from the


municipality or authorized representative from DOH stating that
the specifications of the Program/Sub-Project/activity that will
be undertaken are compliant with DOH protocols and standards,
as applicable.

xviii. Local Counterpart Contribution for Sub–Project Implementation


Monitoring Report (prepared by Municipal Financial Analyst), as
applicable.

xix. Municipal Engineer Certification on the approved productivity


outputs, and prevailing unit rates for materials and labor (for
each municipality);

xx. Certification on the Materials Quality/Availability of aggregates,


from one of the following: (for each municipality);

1. DPWH, for existing approved quarry sites, or;

2. Municipal Engineer, for new or not recognized quarry sites,


which the LGU deems suitable for use in rural
infrastructure

xxi. Additional Requirements per Project Type:

1. For Access Infrastructure projects (Roads, Bridges and


Drainage System):
a. Guides for Technical Review of Proposed
Infrastructure Sub-Project
b. Implementation Work Schedule (Gantt Chart)
c. Bill of Quantities / Quantity Take-Offs
d. Indirect Cost breakdown
e. Technical plans

2. For Road Construction/Road Opening


a. Specifications
Page 11 of 21
b. Profile indicating slope percentage and proposed and
existing structures (if any)
c. Traverse indicating proposed and existing structures
(station defined)
d. Cross section (cut and fill) at 20-meter interval
e. Schedule of cross / side ditches and canal
f. Road sections where slope protection and cross
drainage maybe required
g. Typical and Structural Details
h. Structural / Standard Design for Box Culvert and
Bridges

3. For Road Improvement


a. Straight line diagram that clearly indicates
stationing of works/structures to be
b. Materials and works specifications
c. Cross sections and profile of the proposed and
existing grade/structures (for the sections affected if
any)
d. Schedule of cross/side ditches and canal (if any)
e. Road sections where slope protection and cross
drainage may be required
f. Typical and Structural Details
g. Structural / Standard Design for Box Culvert and
Bridges (if any)

4. For Water System Sub-Project:


a. Hydraulic Study/Analysis
b. Certification from the Municipal Health Office (MHO)
on the bacteriological examination of the proposed
water source, including appropriate
recommendations
c. Received copy of water permit application

5. For Community/Social Enterprise and Income Generating


Sub-Project:
a. Proposal containing the study on feasibility

6. For Waste Disposal Sub-Project:


a. Proposal and Feasibility Study
b. Training design for the conduct of solid waste
management
c. Applicable Environmental Requirements

7. For Sub-Project that will Charge Users’ Fee


a. Proposal containing the study on the feasibility, cost-
benefit, and derivation of the agreed users’ fee
computation.

8. For Capacity Building/Skills Training and other Soft


Subproject:
a. Proposal with estimated cost/budget breakdown

b. Final Tranche (10% of the allocated fund)

i. Letter Request for the release of final tranche signed by the


Punong Barangay, and duly endorsed by the Regional Director or
authorized representative;

Page 12 of 21
ii. Journal Entry Voucher prepared to record receipt of first tranche
and Authenticated bank credit advice as proof of receipt of funds;

iii. Physical Accomplishment Report stating at least a 70%


Completion Rate duly approved by Punong Barangay;

iv. Bank Snapshot and/or Bank Certification with Bank


Reconciliation Statement and supporting documents;

v. SIA, and approved Program of Works (for infrastructure


subprojects) and/or Project Proposal with estimated cost for
other types of projects;

vi. Reports of Checks Issued and Reports of


Disbursements/Utilization of at least 80% of the First Tranche
duly prepared by the Barangay Treasurer, certified by the
Municipality Accountant, approved by the Punong Barangay, and
noted by the Municipality Local Chief Executive;

vii. Certification of Pending Financial Obligations duly signed by the


Treasurer, Punong Barangay and Technical Facilitator;

viii. Certification of Remaining Works and Material to be Procured


duly signed by the BAC Chairperson, Punong Barangay, and
Technical Facilitator;

ix. Operations and Maintenance Plan/Program

x. Notarized Mutual Partnership Agreement, following the


Memorandum issued by the NPMO dated October 6, 2020; and

xi. Received Application for Annotation (if applicable, e.g. SPs that
utilized private lots) or Barangay Resolution stating that the
Barangay will undertake the Annotation and allotting funds for
the processing.

xii. If Contingency Cost is requested:

1. Justification, which may include Certification of Price


Escalation and/or Underestimated Program of Work (POW)
2. Certificate of Extra Work
3. Cost Comparison Analysis Report (CPP vs Actual)
4. Variance Analysis Report

Section 3.4. Once the physical progress requirement is reached, and the Grant
fund balance is 20% or less, the Treasurer shall prepare and submit the
documentary requirements for the Final Tranche. The required physical progress
for the release of the Final Tranche shall be at least 70%.

Section 3.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 3.6. The Barangay, through the Barangay Treasurer, shall submit to
the MDC through the Area Coordinator, a Certificate of Deposit or photocopy of
the validated passbook entry of deposit to cover cash contribution from their
Development Fund, or Certificate of Availability of Labor, Equipment or
Page 13 of 21
Materials, or other contributions in kind, in accordance with their commitment
during the selection of sub-projects. Copies of these certifications shall be
attached as an integral part of this Agreement;

Section 3.7. The Barangay shall deposit any cash contribution from the
Municipality or Barangay Councils or community members to the Barangay
Trust Account.

Section 3.8. If the Sub-Project generates income, the Barangay shall open a
separate bank account for the sub-project income and shall not be mixed with
the Grant received;

Section 3.9. Fund replenishment, liquidation, and audit shall be in accordance


with government accounting and auditing laws, rules, and regulations;

Section 3.10. The Grant component of the Sub-Project budget duly approved by
the MDC-PRA is not subject to change. If there are savings realized in
implementing the Sub-Project, the Barangay shall draw up a plan for the
utilization of the savings to be approved by the Barangay Assembly in a meeting
held for that purpose. Savings can be used for the expansion of the same sub-
project or other community development projects not included in the negative
list of KALAHI-CIDSS KKB CDD. For savings to be used for other community
development projects, the plan approved by Barangay Assembly shall be
submitted to the MDC-PRA for review and concurrence to ensure that it is within
the Guidelines of KALAHI-CIDSS KKB CDD; and

Section 3.11. Cost overruns shall be covered through the augmentation of local
counterpart contributions.

Section 3.12. After the Sub-Project is completed and funds have been fully
utilized, shall close the Barangay Trust Fund Account, secure a bank
certification from the LBP, and submit the same to DSW-RPMO;

Section 3.13. Recognize the cost of the completed sub-project in the Barangay
books upon turnover through the Municipal Accountant, all relevant documents
necessary for the recognition of the sub-project shall be provided by the
Barangay through the Barangay Treasurer to the Municipal Accountant

ARTICLE IV
DELAY

Section 4.1. The Barangay agrees to commence the sub-project within ten (10)
days upon approval of this Specific Implementation Agreement and receipt of
funds and to complete the sub-project as indicated in the Sub-Project Work
Schedule, herein attached as integral part of the sub-project documents;

Section 4.2. In the event that the schedule stipulated in this Agreement is
delayed, the Barangay shall submit a written explanation and a catch-up plan
included in the Physical Progress Report to DSWD-S/RPMO and the MIAC. The
DSWD-S/RPMO and the MIAC shall assess the validity of the grounds for the
delay. The Catch-up Plan shall be closely monitored by the DSWD and the MIAC;

Section 4.3. Should the barangay default to undertake certain activity/ies due
to lack of materials and/or pertinent equipment support, and other similar
reasons, the DSWD-RPMO and ACT shall provide technical assistance through
its designated Regional Procurement Officer;

Page 14 of 21
Section 4.4. The final project cost and corresponding adjustment shall be
effected after cost reconciliation between the amounts indicated in the Sub-
Project Concept Form and the Sub-Project Completion Report;

Section 4.5. In the event that the amount released in the First Tranche has not
been fully utilized and the required 30% Physical Accomplishment has not been
achieved and will not likely be achieved after the lapse of three (3) months, and
the cause of delay is other than fortuitous events, the Program, through the
DSWD-RPMO will initiate the recall of the remaining unutilized balance based
on the guidelines issued for the purpose.

Section 4.6. Should there be remaining activities on or before the closing date
of the KC KKB-CDD, the Municipality and/or Barangay shall complete the same
using its/their funds to ensure the functionality of the subproject.

Section 4.7. Any delay encountered by the LGU with conditions that do not
constitute force majeure and which impede or are likely to impede the timely
performance of the AGREEMENT, the LGU will immediately notify the DSWD in
writing with full particulars of the delay, including its likely duration, and its
cause.

Section 4.8. Upon receipt of notice of any decision by the DSWD to suspend the
MOA, the LGU will take immediate steps to reduce expenses to a minimum and
not undertake any further obligations.

Section 4.9. Upon finding that the LGU failed to adequately justify or explain
their non-performance or violation of the provisions of the AGREEMENT, the
DSWD shall issue a suspension order terminating the AGREEMENT in whole or
in part.

ARTICLE V
WARRANTIES

Section 5.1. Each Party represents and warrants that:

a. It has the right, power, and authority to enter into this Agreement and to
fully perform its obligations hereunder;

b. It shall comply with its privacy policy and shall not engage in any fraud or
any deceptive, misleading unethical or unfair competition practices; It
shall not act in any manner which conflicts or interferes with any existing
material commitment or obligation of such Party’s performance of its
material obligations under this Agreement; and

c. It shall perform in compliance with any applicable laws, rules, and


regulations of any governmental authority.

ARTICLE VI
RESERVATION

Section 6.1. The DSWD reserves the right to suspend Program implementation
for grievances relating to non-compliance or violation by the Barangay, and/or
the Municipality of any provision of the MOA, AGREEMENT or any other DSWD
memorandums, circulars and other legal issuances.

Page 15 of 21
Section 6.2. The DSWD may withhold further release of funds for any project
implementation in the event that the Barangay and/or Municipality fails to
submit any of the required documentation or liquidation reports as provided for
by the AGREEMENT and DSWD M.C. No. 9 series of 2023, except in force
majeure. The term “force majeure” shall mean events that can be attributed to
causes specified hereunder:

i. Natural causes such as earthquakes, typhoons, floods, and


epidemics; and,

ii. Human causes such as revolutions, insurrections, blockages, riots,


civil disturbance, court injunctions, strikes, and other analogous or
similar causes.

Section 6.3. The DSWD reserves the right to, at its sole discretion, conduct a
review, audit investigation, or any other activity requiring access to such records
and/or the LGU’s personnel during the term of the AGREEMENT or thereafter.
The LGU will grant to any such person, during business hours, free access to all
workplaces, and will make available at any time all records and documents,
including supporting documents, to make copies thereof, for expenditures that
have been incurred for the execution of the work.

ARTICLE VII
ANTI-GRAFT AND CORRUPTION PRACTICES ACT

Section 7.1. The Parties shall not in any way unduly benefit from the MOA and
this AGREEMENT, and shall at all times adhere to the provisions of R.A. 3019,
also known as the “Anti-Graft and Corruption Practices Act”.

ARTICLE VIII
AMENDMENT/REVISION

Section 8.1. Any modification of this AGREEMENT shall be made by a written


agreement and signed by an official authorized by the respective Party.

Section 8.2. This AGREEMENT may be amended, supplemented, or revised with


the consent of both Parties.

Section 8.3. In case of supplementation, the supplemental document shall be


attached to the AGREEMENT and shall for all intents and purposes be
considered as part of the original AGREEMENT.

Section 8.4. In case of an extension of the AGREEMENT by amendment, the


amending Party shall propose the amendment at least fifteen (15) days before
the expiration of the AGREEMENT.

ARTICLE IX
SETTLEMENT OF DISPUTES

Section 9.1. If any dispute or difference of any kind whatsoever shall arise
between the Parties in connection with the implementation or interpretation of
this contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation. In case of dispute, alternative modes of
resolving the same through mediation, re-negotiation, dialogue, or similar means
may be resorted to.

Section 9.2. Any complaint relating to the interpretation and implementation of


the Agreement shall be resolved first in the community using their local conflict
resolution process.
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Section 9.3. The settlement of disputes/conflicts arising from abuse or
violations of project-related guidelines shall be resolved under the mechanics of
applicable DSWD rules and regulations.

Section 9.4. A Grievance Redress System (GRS) shall be jointly established or


strengthened by the LGU and the DSWD to provide a venue for stakeholders to
raise their concerns or complaints on any aspect of the implementation of the
PPA or address complaints against any official or staff of the DSWD, and LGUs
involved in implementation. Any of the available systems existing in the
city/municipality may be used to capture grievances. These systems include the
LGU’s system (e.g. Lupon ng Tagapamayapa structure), the DSWD’s Grievance
Redress System in KALAHI-CIDSS NCDDP and the Citizens’ Complaint or
Assistance Desk and promote the GRS of DSWD in the KALAHI- CIDSS.

Section 9.5. Any dispute concerning any question arising under this
AGREEMENT that is not disposed of by AGREEMENT between the Parties or
through the local conflict resolution process shall be decided by the DSWD,
which shall furnish the parties a written copy of the decision.

Section 9.6. Should the GRS fail to resolve the complaint, the same shall be
brought to the attention of the DSWD Grievance Committee, which shall review
and investigate the complaint. The Grievance Committee shall then submit its
recommendation to the DSWD-RPMO which shall issue an order imposing the
sanction or dismissing the complaint with finality. In the case of administrative
cases, the cases shall be referred by DSWD to the proper authority which has
disciplinary jurisdiction over the matter.

Section 9.7. Accordingly, the parties may resort to court action only after all
efforts to settle the disputes amicably have been exhausted.

ARTICLE X
PENALTIES

Section 10.1. The Sub-Project shall be implemented in accordance with the


terms and conditions stipulated in the MOA and the AGREEMENT. Failure on
the part of any Party to comply with any provision of this AGREEMENT shall
warrant its revocation and shall give rise to the filing of appropriate
administrative, civil, and criminal cases against the responsible party except in
cases where:

a. The concerned Party is able to promptly notify in writing of the occurrence


of any event or condition which may reasonably delay the progress or
prevent the completion of this AGREEMENT, in whole or in part, as soon
as the facts become known. A penalty shall be deducted from the
scheduled payment, for every month of delay in the submission of
deliverables. The penalty shall be computed as 5% of the corresponding
amount due from DSWD for the specific output; and,

b. The concerned Party is able to promptly notify in writing of the occurrence


of any event of force majeure affecting this AGREEMENT to the extent that
would make it impossible or impracticable to carry out, in whole or in part,
its obligations in this AGREEMENT.

The concerned Party as of the date of the notice shall be relieved from liability
for its failure to carry out, in whole or in part, its obligations. In such an event,
either Party may terminate this AGREEMENT by giving a receipt of notice of
termination. The concerned Party shall take immediate steps to bring the work

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to a close in a prompt and orderly manner and shall refrain from incurring
further expenditures in connection with the DSWD.

Section 10.2. Non-compliance or violation by the Municipality, or the Barangay,


either individually or collectively, of any provisions of the MOA or this
AGREEMENT, as determined by the DSWD RPMO and if necessary, the NPMO
after an investigation, shall render judgment in writing which may result in the
imposition of the following sanctions, depending on the gravity of the offense:

a. A warning or the imposition of probationary status;

b. Termination of Project operations, and;

c. Delisting of “violating” Barangay, a group of Barangays, or the entire


Municipality from the current Project and future Projects;

ARTICLE XI
TERMINATION

Section 11.1. The DSWD may terminate the MOA and the AGREEMENT in
whole or in part on the following grounds:

a. The LGU is found to have made any material or fraudulent


misrepresentation in the making of or performance of the AGREEMENT
regardless of when the misrepresentation was discovered;

b. The LGU becomes insolvent or has experienced financial instability as to


cast doubt on its ability to substantially fulfill its obligations to the DSWD.

c. The LGU substantially fails to perform any of its obligations under the
AGREEMENT.

d. The DSWD does not receive the necessary funds to cover the total value of
the AGREEMENT.

Section 11.2. The LGU may terminate the MOA and the AGREEMENT in whole
or in part on the following grounds:

a. Failure of the DSWD to provide the allocations agreed upon the execution
of the MOA.

b. Failure of the DSWD to distribute the allocated funds agreed upon the
execution of the MOA.

Section 11.3. The Barangay and/or Municipality may request the termination
of the MOA and the AGREEMENT with or without cause and disengagement from
the KC KKB-CDD Project thirty (30) days upon written notice to the other parties
specifying the reasons for the disengagement. The process of termination and
disengagement shall follow the process defined in DSWD M.C. No. 9 series of
2023. Termination of the KC KKB-CDD Project will not automatically entail
termination of the KALAHI-CIDSS Project in the Municipality.

Section 11.4. In the event that the Municipality fails to complete the approved
subprojects by 2024, the Municipality shall be constrained to shoulder all the
corresponding costs required to complete implementation of the Sub-Projects.

Section 11.5. The DSWD may, based on the failure of the LGU to comply with
the terms and conditions of the AGREEMENT, or in the event that the LGU

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incurs unreasonable delay, inaction or break of obligation under the
AGREEMENT, issue a notice of intent to terminate the AGREEMENT.

Section 11.6. The Notice of Intent to Terminate shall require the LGU to show
cause on why the AGREEMENT should not be suspended and/or terminated.

Section 11.7. The Termination of the Agreement in whole or in part by a Party


will not affect the accrued rights or claims and liabilities of either Party to the
Agreement.

Section 11.8. The Termination of the Agreement in part by either of the Parties
does not affect the parts of the Agreement which were not terminated.

ARTICLE XII
DISSOLUTION AND WINDING UP

Section 12.1. Upon the decision of either or both parties for the termination of
the AGREEMENT whether by the lapse of effectivity, revocation or termination,
both parties shall prepare to dissolve and wind up.

Section 12.2. The LGU shall furnish the DSWD a complete accounting and
rendering on the disbursement of funds, the status of the sub-project
implemented, the balance of unutilized funds and a report on the Sub-Project
and all other documents required by DSWD M.C. No. 9 series of 2023.

Section 12.3. Only after the conclusion of the Sustainability Evaluation Test as
provided in DSWD MC. No. 9 series of 2023 is the sub-project considered
complete and the Municipality and Barangay are discharged from all obligations,
responsibilities and liabilities arising from the AGREEMENT forthwith.

Section 12.4. The submission of the required documents shall in no case be


later than three (3) months following the conclusion of the sub-project.

Section 12.5. After compliance with the above mentioned provisions will the
MOA and AGREEMENT be considered terminated and all rights and obligations
arising therefrom shall be extinguished.

ARTICLE XIII
SEPARABILITY CLAUSE

Section 13.1. In the event that one or more provisions contained herein shall
be held invalid, illegal or unenforceable in any respect and for any reason by a
declaration of a competent court or authority, the remaining provisions of the
AGREEMENT shall remain valid, legal and enforceable and binding between the
parties, their successors, and assignees.

ARTICLE XIV
EFFECTIVITY AND PERIOD OF AGREEMENT

Section 14.1. This AGREEMENT shall take effect upon signing hereof by the
Parties and shall remain valid and effective until the completion of the Sub-
Project or the effectivity of the MOA, whichever is earlier.

ARTICLE XV
MISCELLANEOUS PROVISIONS

Section 15.1. Except as otherwise provided in this AGREEMENT, any failure of


either of the Parties to comply with any obligations stated in the provisions of
the MOA or this AGREEMENT may be waived by the Party entitled to the benefits
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thereof only by a written instrument signed by the Party granting such waiver,
but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

Section 15.2. Any change in the composition of the Management of both parties
during the effectivity of this Agreement shall not in any way suspend or terminate
the herein provisions unless for cause and upon mutual consent in writing of
both parties.

Section 15.3. The DSWD will retain all records, including financial documents
related to or arising from the implementation of the AGREEMENT during the
execution of AGREEMENT and thereafter for a period of not less than ten (10)
years from the termination or the expiration of the AGREEMENT.

Section 15.4. In the performance of their duties, both Parties shall conduct
themselves in accordance with the highest ethical standards as stated in R.A.
6713, known as the “Code of Conduct and Ethical Standards for Public Officials
and Employees” and its Implementing Rules and Regulations.

IN WITNESS THEREOF, the Parties have set their hands this _____ day of _____
2024.

FOR THE DSWD: FOR THE MUNICIPALITY OF


SANTA MARIA:

LUCIA S. ALAN
Regional Director HON. HILARIO G. PAGAUITAN
Municipal Mayor

FOR THE BARANGAY:

HON. JUNAR L. LAGGUI


Barangay Chairperson,
Barangay Villabuena

SIGNED IN THE PRESENCE OF:

FRANCO G. LOPEZ ALLAN B. BAUI


Assistant Regional Director for Municipal Disaster Risk Reduction
Operations/Regional Program and Management Chief
Manager

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ACKNOWLEDGEMENT

Republic of the Philippines }


___________________________ } S.S.

SUBSCRIBED AND SWORN TO before me on the _____, day of


________________, 2024, the following personally appeared before me and
exhibited to me competent proofs of their identities:

Name Identification Card Valid Until

both known to me and to me known to be the same persons who executed the
foregoing instruments consisting of ____ pages, including this page where the
acknowledgment appears, signed by the parties and their instrumental
witnesses on this page and on the left hand margin of each and every page
thereof and they acknowledge to me that the same is their free and voluntary
act and deed as well as the corporations they represent.

WITNESS MY HAND AND SEAL, on the date and place above-written.

Doc. No. __________;


Page No. __________; NOTARY PUBLIC
Book No. __________;
Series of 2024.

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